COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2024

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

9. COMMITMENTS AND CONTINGENCIES

On April 13, 2022, the Company and its customer entered into an amendment to the buy-back agreement described in ‘Revenue Recognition-Sale to Customer with a Buy-Back Guarantee-Lease Income’. Pursuant to the amendment, the Company agreed to purchase all of the barrier subject to the original buy-back agreement, as well as an additional amount. The total estimated purchase price is $5,000, representing the barrier, associated loading, freight, and yarding. The deferred buy-back lease asset and obligation were fully reduced as the Company picked up the original buy-back amount throughout 2022. As of December 31, 2024, the Company has picked up all barrier related to this purchase agreement and does not expect to incur any additional costs related to this purchase. For the years ended December 31, 2024 and 2023 the Company recognized additional revenue associated with the buy-back agreement closeout of $679 and $0, respectively.

The Company is party to legal proceedings and disputes which may arise in the ordinary course of business. In the opinion of the Company, it is unlikely that liabilities, if any, arising from legal disputes will have a material adverse effect on the consolidated financial position of the Company.